Trustees approve insurance
premium increase
By Laura Pelner
Campus
Editor
Though Purdue's trustees said it was hard for them
to do, the board approved the 2002 Medical Benefits Program that will
raise insurance premiums and out-of-pocket expenses for all University
faculty and staff covered by the plan.
The board voted to accept the plan at its Friday
morning meeting. Under the new program, employees who make less than
$38,000 a year will pay $150 more for coverage and those who make $38,000
or more a year will pay an additional $300. The maximum annual out-of-pocket
expenses for prescription drugs will increase from $750 to $1,000 per
person and from $1,500 to $2,000 per family.
James Almond, vice president for business services
and assistant treasurer, said the increases are fairly modest.
"(The plan) continues to provide excellent coverage,"
he said.
Trustee John Edwardson said the health industry
is seeing similar increases in medical and pharmaceutical agencies as
well, which Almond supported. Almond said medical claims are projected
to increase by about 15 percent for the next calendar year and pharmacy
claims should increase 22 percent.
The University attempted to offset some of the
financial burden by increasing its own contributions to the program
— it budgeted a 15 percent increase in medical contributions.
"The University has made significant investments
to maintain the plan," Almond said.
For the 2001 calendar year the plan's total expenses
are estimated to be about $61.9 million and the plan covers about 21,000
people.
Linda Mason, chair of the University's faculty
senate, told the trustees she thought the health care system was in
a state of "crisis" and she urged the trustees to take a complete look
at it.
"If the cost of health care to Purdue faculty and
staff should increase, the situation could approach crisis levels,"
Mason said.
She said the higher costs make the University vulnerable
because other schools with similar coverage and lower premiums could
attract some of Purdue's faculty.
"A faculty senate survey showed the (insurance)
package was a factor for staying here," Mason said.
Even after hearing Mason's concerns, the trustees
approved the new plan. Edwardson said the trustees can sympathize with
faculty and staff concerns because they too have suffered similar increases
in the companies they work for.
Trustee Wayne Townshend said approving the changes
wasn't fun for the trustees, but it was something that needed to be
done.
In order to help faculty and staff understand the
changes, Almond told the trustees the University is planning a series
of forums in October that would be open to the Purdue community. He
also said Purdue is working to establish a committee to address long-term
options in health care coverage.
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